Robbins Inc A) $10589
B) $111

question 65

Multiple Choice

Robbins Inc.is considering a project that has the following cash flow and cost of capital (r) data.What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. $$\begin{array} { l c c c c c c } \text { r: } & 10.25 \% & & & & \\\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash flows } & - \$ 1,000 & \$ 300 & \$ 300 & \$ 300 & \$ 300 & \$ 300\end{array}$$

• A) $105.89
• B) $111.47
• C) $117.33
• D) $123.51
• E) $130.01

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Definitions:

Proprietorship

A business structure owned by a single individual who is responsible for its liabilities and entitled to its profits.

CPA

Certified Public Accountant, a designation awarded to individuals who pass an examination and meet certain education and experience requirements in the field of accounting.

Equities

Financial instruments representing ownership interest in a company, commonly referred to as stocks, which entitle the holder to a share of the company's earnings and assets.

Accounts Receivable

Receivables from customers for goods delivered or services provided by a business, not yet paid for.